Narayana Hrudayalaya: From Heart Care to Human Care SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Narayana Hrudayalaya: From Heart Care to Human Care
Narayana Hrudayalaya (NH), a leading cardiac hospital network with many firsts to its credit, has revolutionized heart care in India. It has a market share close to 15 per cent in the cardiac sector, has successfully completed 70,000 surgeries and has given insurance to over four million farmers through its microinsurance scheme. Its motto, "caring with compassion," is its guiding philosophy and the telemedicine network set up at NH has been able to provide treatment for over 50,000 cardiac patients free of charge. The case highlights the evolution of NH and the vision of its founder, and outlines his ambitions and struggles in seeking to increase the number of cardiac surgeries performed each day. How can he retain the top surgeons and fulfill his mission to offer affordable heart care while the compensation of doctors is rapidly increasing? Tanusree Mazumder is affiliated with Management Development Institute. Radha R. Sharma is affiliated with Management Development Institute.
Swot Analysis of "Narayana Hrudayalaya: From Heart Care to Human Care" written by Tanusree Mazumder, Radha R. Sharma includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cardiac Nh facing as an external strategic factors. Some of the topics covered in Narayana Hrudayalaya: From Heart Care to Human Care case study are - Strategic Management Strategies, International business, Leadership, Strategy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Narayana Hrudayalaya: From Heart Care to Human Care casestudy better are - – cloud computing is disrupting traditional business models, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, geopolitical disruptions, central banks are concerned over increasing inflation,
increasing energy prices, wage bills are increasing, etc
Introduction to SWOT Analysis of Narayana Hrudayalaya: From Heart Care to Human Care
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Narayana Hrudayalaya: From Heart Care to Human Care case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cardiac Nh, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cardiac Nh operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Narayana Hrudayalaya: From Heart Care to Human Care can be done for the following purposes –
1. Strategic planning using facts provided in Narayana Hrudayalaya: From Heart Care to Human Care case study
2. Improving business portfolio management of Cardiac Nh
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Cardiac Nh
Strengths Narayana Hrudayalaya: From Heart Care to Human Care | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cardiac Nh in Narayana Hrudayalaya: From Heart Care to Human Care Harvard Business Review case study are -
Training and development
– Cardiac Nh has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Narayana Hrudayalaya: From Heart Care to Human Care Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Effective Research and Development (R&D)
– Cardiac Nh has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Narayana Hrudayalaya: From Heart Care to Human Care - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Cardiac Nh is one of the most innovative firm in sector. Manager in Narayana Hrudayalaya: From Heart Care to Human Care Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Cardiac Nh is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Tanusree Mazumder, Radha R. Sharma can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
High brand equity
– Cardiac Nh has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cardiac Nh to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Cardiac Nh has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cardiac Nh has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Cross disciplinary teams
– Horizontal connected teams at the Cardiac Nh are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Cardiac Nh digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cardiac Nh has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Ability to recruit top talent
– Cardiac Nh is one of the leading recruiters in the industry. Managers in the Narayana Hrudayalaya: From Heart Care to Human Care are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Cardiac Nh is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Cardiac Nh in the sector have low bargaining power. Narayana Hrudayalaya: From Heart Care to Human Care has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cardiac Nh to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Cardiac Nh is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Cardiac Nh is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Narayana Hrudayalaya: From Heart Care to Human Care Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Narayana Hrudayalaya: From Heart Care to Human Care | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Narayana Hrudayalaya: From Heart Care to Human Care are -
Products dominated business model
– Even though Cardiac Nh has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Narayana Hrudayalaya: From Heart Care to Human Care should strive to include more intangible value offerings along with its core products and services.
Workers concerns about automation
– As automation is fast increasing in the segment, Cardiac Nh needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Slow to strategic competitive environment developments
– As Narayana Hrudayalaya: From Heart Care to Human Care HBR case study mentions - Cardiac Nh takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Cardiac Nh supply chain. Even after few cautionary changes mentioned in the HBR case study - Narayana Hrudayalaya: From Heart Care to Human Care, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cardiac Nh vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Tanusree Mazumder, Radha R. Sharma suggests that, Cardiac Nh is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Interest costs
– Compare to the competition, Cardiac Nh has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Cardiac Nh is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Narayana Hrudayalaya: From Heart Care to Human Care can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study Narayana Hrudayalaya: From Heart Care to Human Care has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Cardiac Nh 's lucrative customers.
High cash cycle compare to competitors
Cardiac Nh has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Aligning sales with marketing
– It come across in the case study Narayana Hrudayalaya: From Heart Care to Human Care that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Narayana Hrudayalaya: From Heart Care to Human Care can leverage the sales team experience to cultivate customer relationships as Cardiac Nh is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Cardiac Nh, firm in the HBR case study Narayana Hrudayalaya: From Heart Care to Human Care needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Narayana Hrudayalaya: From Heart Care to Human Care | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Narayana Hrudayalaya: From Heart Care to Human Care are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cardiac Nh to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Cardiac Nh to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Cardiac Nh is facing challenges because of the dominance of functional experts in the organization. Narayana Hrudayalaya: From Heart Care to Human Care case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Cardiac Nh to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Using analytics as competitive advantage
– Cardiac Nh has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Narayana Hrudayalaya: From Heart Care to Human Care - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cardiac Nh to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Cardiac Nh can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Buying journey improvements
– Cardiac Nh can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Narayana Hrudayalaya: From Heart Care to Human Care suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Low interest rates
– Even though inflation is raising its head in most developed economies, Cardiac Nh can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Cardiac Nh can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cardiac Nh can use these opportunities to build new business models that can help the communities that Cardiac Nh operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Cardiac Nh can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cardiac Nh can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Narayana Hrudayalaya: From Heart Care to Human Care, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Cardiac Nh can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Cardiac Nh in the consumer business. Now Cardiac Nh can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Narayana Hrudayalaya: From Heart Care to Human Care External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Narayana Hrudayalaya: From Heart Care to Human Care are -
High dependence on third party suppliers
– Cardiac Nh high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Shortening product life cycle
– it is one of the major threat that Cardiac Nh is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Cardiac Nh in the Leadership & Managing People sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Narayana Hrudayalaya: From Heart Care to Human Care, Cardiac Nh may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Environmental challenges
– Cardiac Nh needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Cardiac Nh can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Technology acceleration in Forth Industrial Revolution
– Cardiac Nh has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Cardiac Nh needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Consumer confidence and its impact on Cardiac Nh demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Stagnating economy with rate increase
– Cardiac Nh can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Increasing wage structure of Cardiac Nh
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Cardiac Nh.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Cardiac Nh needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cardiac Nh with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Narayana Hrudayalaya: From Heart Care to Human Care Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Narayana Hrudayalaya: From Heart Care to Human Care needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Narayana Hrudayalaya: From Heart Care to Human Care is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Narayana Hrudayalaya: From Heart Care to Human Care is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Narayana Hrudayalaya: From Heart Care to Human Care is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Cardiac Nh needs to make to build a sustainable competitive advantage.